News · 2015. 6. 2. · LNDC NEWS January - March 2015 1 The past quarter of the 2014/2015...

J A N U A R Y - M A R C H 2 0 1 5

Mall coming soon at former Fairways Site

News

1 CEO Foreword

2 Staff movements

3 Step Launch

4 GBR Summit

5 LNDC and Lesotho Postbank sign PCG MoU

6 The US Congress likely to renew AGOA

7 Lesotho attends the Magic Show/Preparation for theSource Africa Exhibition

8 Supply Chain Finance coming soon

9 SADC IPA Forum

9 LNDC and Mauritius sign an MoU

10 Further strides in the promotion of opportunities in the automotive industry

11 CEO tours factories

12 Risk mitigation workshop

13 LNDC in Pictures

14 Why invest in Lesotho?

LNDC NEWS January - March 2015

Factory BuildingsWANTED

Notice is hereby given to all interested Basotho who havesuitable buildings that can be rented and used as factoryshells by industrialists to register such buildings with theLNDC. The required buildings should conform to theLNDC’s standards and other legal requirements.

When registering, the following features should beclearly stated: plot number, location, size (strictly 500m²

or bigger), title deed, height, and available infrastructuresuch as installed electricity in kva, water in kilolitres, etc.

For further details, contact the office of the Head – Investment Services Division at LNDC, P/Bag A96, Maseru, 5th Floor, Block A, Development House, Kingsway Street, Maseru. Tel: +266 22312012 Fax: +266 22310038Email: [email protected]

Factory Buildings-Tikoe

LNDC ADVERT

For more information:

Lesotho National Development Corporation

P. Bag A96, Maseru 100Tel: +266 22312012Fax: +266 22310038

Email: [email protected]: www.lndc.org.ls

Contents

LNDC NEWS January - March 2015 1

The past quarter of the 2014/2015 financial year,which literally was the first in my service as the

LNDC CEO has been eye-opening, challenging anda fulfilling one, not just for me in the steering wheelbut for my Team as well, as each member adjustedto a new Leadership and Management approach.

I am therefore, more than happy to share with you in thiscolumn; some of the important activities that we have beenworking on, particularly in Trade and Investment as well asin Strategic Management.

Trade and Investment

The Katse Fish Farms is one of the strategic projects that wewould like to see expanding and increasing jobs here inLesotho. I have visited both the hatchery and processing plantstill in Cape-Town, and appreciated how these two couldcomplement the production happening in the highlands ofLesotho. In this regard, I would like to assure you that LNDCis working tirelessly to ensure that the expansion dream be-comes a reality in the near future.

Advocating for the timely re-authorisation of the AfricanGrowth and Opportunity Act (AGOA) has been one of theimportant tasks through which the Corporation through myoffice supported the Trade Minister’s lobbying delegation inJanuary. While beneficiaries still bargain for a renewal periodof 15 years, the Obama administration seems more inclinedto a 10-year renewal period.

Efforts to integrate the regional economy have been ad-vanced at different fora and levels. Lesotho, through theLNDC hosted the Southern African Development Commu-nity Investment Promotion Agencies Forum in February.Promotion of peer to peer learning amongst the SADC IPAsis one of the key elements of this annual gathering. At thesame Forum, LNDC and Mauritius signed a Memorandumof Understanding.

The Corporation has during the quarter took the second steptowards enhancement of the city centre, through investmentin property; that in turn will not only beautify the CapitalMaseru, but will create the much needed hundreds of jobs forour people. A retail and office block development is alreadyvisible at the former Fairways site.

Strategic Management

We have finalised recruitment in terms of our ExecutiveManagement and many of the vacant positions will be filledduring the next quarter. In the same manner, the LNDCTeam has begun to work on the 2015/16 – 2017/18 StrategicPlan which shall be finalised in the near future.

I did take familiarisation tours to some of our industrialfirms; namely; Formosa Textiles, Nien Hsing International,China Garments Manufacturing (CGM) as well as the Indus-trial Garments Manufacturers (IGM), founded and run by alocal entrepreneur under the guidance of CGM, whom I ap-plaud for the bold move.

In terms of the Corporate Social Investment, LNDC has sup-ported the launch of the Student Training for Entrepreneur-ial Promotion (STEP) and sponsored the initiative to a tuneof M100, 000.00.

These are the highlights and I believe I have given you aclear picture of how our journey has begun. As we walk intothe first quarter of the financial year 2015/2016, let us allcontinue to support and contribute to the success of theLNDC. Enjoy reading this copy!

Kelebone LeisanyaneChief Executive Officer - LNDC

From the CEO’s Desk

Mr Kelebone Leisanyane CEO LNDC

Editor’s NoteWarm greetings and thank you for taking time to read this edition. I would like to take this

opportunity to show our gratitude to every one of you who has been following withoutfail; the LNDC News from mainstream media to our very own Social Media channels and

publications.

As we move into a brand new financial year, the Corporation also intends to intensifycommunications efforts as well as interaction with all our stakeholders, from the CapitalMaseru to all corners of the Kingdom. ‘Ho tloha Tele ho ea Mechachane’ as said inSesotho, LNDC will again start to engage with citizens in Mokhotlong in the next quar-ter. Our aim is to finally make it to the ten districts of this country by the end of this fi-nancial year.

Many of our followers will recall that LNDC also communicates through Facebook,Flickr and YouTube. We did take a short break from social media but today, itgives me great joy to say; our channels will once again be active and a lot on ourdevelopments can be viewed on the LNDC TV/ YouTube.It is also gratifying to share the news that LNDC in Collaboration with a localservice Provider ‘Khaya Holdings’, will produce twelve episodes of a programmetitled Tseba ka LNDC “Invest in Lesotho.” This is one of the means in which wecan all get to appreciate LNDC, its mandate and its business better.

Allow me not to spill all the beans as we have a lot in store for our readers andviewers this year. Enjoy reading this edition and remember;

Invest, Live and Prosper in LesothoNtsiuoa Sekete


Staff Movements Mrs. NthabisengPosholihas been appointedHead of Finance Division with effectfrom 1st January,2015. She was previously serving as Senior Accountantat LNDC.

Mrs. Mphu Khakahas been appointed

Head of Property Management Division

with effect from 1st January, 2015.

She served in the samedivision as Property

Development Officer.

Ms PuseletsoMakhakhe

has been appointedInvestment ServicesManager with effectfrom 2nd of March,2014. Ms Makhakhehas been serving in

the division as an Investment Services

Officer.

Ms. PuseletsoMoketehas joined the LNDC family as theAccounts Officer from March, 2015. She previouslyworked as a CreditController with MoraiMaseela & Co. MsMokete has also beenan intern at LNDC.

The Lesotho National Development Corporation haswelcomed the initiative of the Leuphana University

in Germany with the support of the Lesotho National Commission for the United Nations

Educational, Scientific and Cultural Organisation(UNESCO), to launch the Student Training for Entrepreneurial Promotion (STEP) in Lesotho.

STEP is a joint project between the Leuphana University andsome partner institutions in seven countries across Africa, in-cluding Lesotho. The main purpose of the project is to providean answer to adverse labour market conditions and limitedemployment opportunities.

In Lesotho, STEP trainees are final year students at tertiarylevel. 100 of them are from the Lesotho Agricultural College(LCA), and 20 from each of the following institutions; LesothoCollege of Education (LCE), Limkokwing University of Cre-ative Technology, National University of Lesotho (NUL), Cen-tre for Accounting Studies (CAS). Furthermore, the other 20has been drawn from recent graduates.

A representative of Leuphana University, Ms. Kim Boschoffsays the idea was brought up by their partners in Uganda,where they had realised a high rate of youth unemploymentsubsequent to completion of their university studies.

The LNDC Chief Executive Officer Mr. Kelebone Leisanyaneannounced at the launch that LNDC has invested M100, 000towards financing the project.

“STEP has come at the right time and complements our Pri-vate Sector Development Initiatives, particularly the youth;as it is aimed at empowering young professionals and stu-dents with skills and knowledge to start new businesses, tobe able to provide their own business plans and marketingstrategies as well as have necessary skills and knowledge foremployment,” explained Mr. Leisanyane.

The programme was applauded by the Honorary Consul ofGermany to Lesotho, H.E Heinz Fiebig saying “ the STEPprogramme is 100% financed by the Federal Republic of Ger-many and we hope it will continue here for a long time.Lesotho may be a small country, but has great human po-tential.” Mr. Fiebig also encouraged participants to be ambi-tious, dedicated, energetic and prepared to take limitedrisks.

Delivering her keynote address, the Minister of Education,Hon. ’Makabelo Mosothoane expressed gratitude to all thepartners for the noble gesture aimed at assisting young pro-fessionals to realise their dreams.


Dignitaries and Partners pose for a photo at the launch of STEP

LNDC contributes M100, 000.00 towardsthe Student Training for

Entrepreneurial Promotion (STEP)

LNDC hosts national trade

and investmentsummit

The Lesotho National Development Corporation(LNDC) in collaboration with the Global Business

Roundtable (GBR), hosted a four-day annual National Trade and Investment Summit

in Maseru.

The first of its kind to be held in Lesotho, the conference fo-cused primarily on exploring possible short-term, mediumand long-term business and professional opportunities be-tween LNDC and representatives of the countries whereGBR is present, with the objective of fostering socio-eco-nomic development.

Head of the LNDC Investment Promotion Division Mr.Mokhethi Shelile presented investment opportunities to par-ticipants, putting emphasis on sectors such as agribusiness,energy, infrastructure, ICT, mining and services.

The LNDC Chief Executive Officer, Mr. KeleboneLeisanyane said the partnership that the Corporation wasforging with GBR was not only focused on sponsorship, butalso on the establishment and enhancement of business net-works between Basotho and fellow counterparts from otherparts of the world.

“This summit comes at an opportune time, as our countryfaces challenges of unemployment and under-employmentof young professionals in particular. It will enable the Cor-poration to access a lucrative network of investors that aregeared to ensuring equitable and holistic benefits for the na-tion and the continent and we look forward to seeing ourlocal private sector tapping from the pool of experience andexpertise from around the globe,” Mr. Leisanyane said.

The roundtable is an initiative based on Christian Principlesfounded by South Africa in 2009. Its vision is to ‘Make Africathe Epic Destination of Trade and Investment Globally By2050’ through the creation of investment opportunities.

Similar initiatives have been successfully launched by GBRin approximately 35 countries both in Africa and Europe, in-clusive of South Africa (founding member), Nigeria, USA,Canada, Ghana, Kenya, Togo, Benin, Ivory Coast, Franceand Spain.


Lead delegates at the LNDC-GBR Investment Summit recievetokens of appreciation

The Lesotho National Development Corporation(LNDC) has announced the Lesotho PostBank as

one of its partners in implementation of the PartialCredit Guarantee scheme.

Established in 2011, the scheme is aimed at addressingthe challenge of access to finance for local entrepre-neurs by providing them with a guarantee of 50 per-cent on their business loans with local commercialbanks.

To benefit from the scheme, prospective entrepreneursare required to submit their business plans to any ofthe participating banks to obtain loans.

Lesotho PostBank joins First National Bank (FNB),Standard Lesotho Bank and Nedbank which have alsopartnered with the LNDC in the past years.

“It is a privilege that we are gathered here today tosign the Partial Credit Guarantee with the Post Bank.

We have since been able to support 27 projects andcreated 600 jobs under this scheme. We however haveone or two projects that encountered problems,” saidMr. Kelebone Leisanyane, the LNDC CEO during thesigning ceremony.

“The bank has a relatively greater opportunity overother banks as it is local. Although it’s the last one tocome on board, it will soon be at the forefront. Whenthe scheme kicked off, that was the beginning of greatthings to come. Lesotho Post Bank came at the righttime and we believe this agreement will bring a hugedifference in the lives of Basotho,” Mr. Leisanyane un-derscored.

Lesotho PostBank CEO Mr. Molefi Leqhaoe said theyhave had time to analyse the scheme to establish whatother banks have not done to date. “We wish to bringin some innovation into the scheme,” adding he wasconfident that they would meet the needs of theirclients.


CEOs of LNDC and Lesotho Postbank sign a PCG agreement

Lesotho Post Bank partners with LNDC onthe Partial Credit Guarantee Scheme


The US Congresslikely to renew

AGOA The African Growth and Opportunity Act (AGOA);

that offers tangible incentives for Sub-Saharancountries to get integrated into the global

multilateral trade system and grow their economieslooks set to be renewed prior to its expiry.

Signed into law on May 18, 2000 under the Tradeand Development Act of 2000, AGOA expires in

September 2015.

In an effort to lobby for timely renewal, the African Union

Ministerial Delegation, led by Lesotho Trade Minister, Hon.

Sekhulumi Ntsoaole and supported by Trade Ministers of

Gabon and Mauritius as well as a technical team from the

Lesotho National Development Corporation and the Lesotho

Textile Exporters Association, travelled to Washington DCfrom the 20th to the 24th January 2015, in order to meet withUS trade policy makers.

LNDC CEO, Mr. Kelebone Leisanyane says “both the Repub-lican majority in Senate and Congress as well as the Democ-rats are in agreement that AGOA should be renewed. TheAGOA draft bill for renewal has been developed and is setfor tabling and debate in the next few weeks. It is expected tobe passed without challenges by both parties in both Houses.However, renewal for 15 years seems highly unlikely. Author-ities in the US seem to settle for a maximum 10 years.”

Lesotho is the second largest textile exporter to the UnitedStates market through AGOA. According to the U.S-AfricaTrade Report of 31st January, 2015; the U.S apparel importsfrom Africa under AGOA continued to grow during January– November 2014, increasing by 7.4% in volume and by9.83% in value terms. During the period, Africa supplied0.47% of total U.S textile and apparel imports, which is downfrom a high of 1.1% when the Multi-Fibre Agreement quotasexpired in January 2005.

Global Garments Factory in Maseru


Source Africa 2015 coming soonLNDC is gearing up for the upcoming Source

Africa 2015, which will again take place from the9th to the 11th June 2015, at the Cape Town

International Convention Centre. The locationhosts at least 19 South African chain stores and

30 mini and regional chains, as well as many independent retailers and importers.

At least 250 exhibitors from more than 20 African countriesare expected to converge at this annual pan-African textile,clothing, footwear and fashion accessory trade event that en-courages linkages between buyers, manufactures and sup-pliers, investment into manufacturing capacity in Africa andaccelerating job creation for many years to come.

Investment Promotion Officer coordinating Lesotho ex-hibitors, Ms. Phomotso Sematlane says “we have realisedvalue and much growth in regard to our manufacturers;both domestic and foreign investors, since we participated inthe event. Our aim is to ensure that our products are wellpositioned and marketed to international and regional buy-ers while we also work hard towards boosting intra-Africantrade.”

To ensure that exhibitors continue to derive more value and

make more impact from this trade fair, LNDC in partnershipwith the Southern African Trade Hub will also hold a two dayworkshop for textile and garment manufacturing companiesto be certified under the Worldwide Responsible AccreditedProduction (WRAP) during the last week of April 2015.

The LNDC Investment Services Manager Ms. PuseletsoMakhakhe, says “this will assist exhibiting manufacturers tomeet the requirements of international buyers.”

This year’s event is expected to attract at least 1600 decisionmakers and will include a two-day trade exhibition, Africancountry pavilions, international business seminars, as wellas an opening plenary session.

The African Growth and Opportunity Act is highly likely tobe renewed and the business seminars will be based on thetheme “AGOA and the next 10 years.” Ms. Makhakhe says“this will be one of the most important sessions of this year’strade fair as we recently attended the Magic Show in LasVegas, in the USA where exhibitors from Lesotho generatedlots of business leads and interest from the US Market deci-sion makers. Staff from the US Government, who are in-volved with the Africa Outreach Programmes have alsopledged support in promotion of Source Africa.”

LNDC Officials attend to guests at the Magic Show in the USA

LNDC Domestic Investment Promotion Officials began to en-gage with participants in October last year, to share this inno-vative idea and to factor in the concerns and inputs in a bid toensure that the product becomes effective, efficient and ben-eficial to the local private sector.

The SCF will incorporate Invoice Factoring and Contract Fi-nancing. According to the LNDC Investment Promotion Man-ager, Mr. Semethe Raleche, the product is aimed at fosteringlending by leveraging access to Corporate and GovernmentMarket; enabling local suppliers to unlock working capital fi-nancing backed by suppliers’ receivables and contracts, aswell as effectively transforming suppliers’ credit risk to theirhigh-quality customers.

“Our policy guidelines shall apply to suppliers providinggoods and services to approved buyers and registered on theSupply Chain Finance Database and by so doing, we are look-ing forward to stimulating enterprise development and pro-viding just-in time access to Working Capital Finance forBasotho owned businesses,” Mr. Raleche explained.

He emphasised that the SCF shall apply only to qualified sup-pliers providing goods and services to buyers (Corporate; de-

velopment agencies and government) pre-approved andlisted in the program and that such suppliers shall be localbusinesses with a majority shareholding of Basotho.

The Invoice Factoring entails the purchase of a firm’s accountsreceivables at a discount by the lender; thereby addressingthe problem of lack of clear credit information by focusing onthe quality of the buyer enabling a risky supplier to transferits credit risk to that of a higher quality buyer. The facility willenable local suppliers of goods and services to raise up to 80%on outstanding invoices secured by a strong credit rating of aCorporate buyer or Government.

On the other hand, Contract Financing provides bridging fi-nance to the supplier backed by a healthy credit rating of thebuyer. As such, it provides working capital financing to SMEswithout considering credit worthiness of the supplier. Theproduct will enable local suppliers to raise up to 70% of theircontract cost price secured by a strong credit rating of a cor-porate buyer or government. The LHDA CEO, Mrs RefiloeTlali has applauded the move saying “We are pleased thatLNDC wants to do more than required by its mandate, whichis to bring in investors. The SCF will make the required im-pact if well implemented.”


Mr. Semethe Raleche presents Supply Chain Finance concept to LHDA Executive Management

Supply Chain Finance coming soonThe launch of the long awaited Supply Chain Finance (SCF); one of the four components of the LNDC

Enterprise Development Facility (EDF) is just around the corner, with final consultations being made with relevant stakeholders that include Government Ministries, the Lesotho Highlands Development Authority,

Lets’eng Diamonds, and local Banks. The facility is made up of the Partial Credit Guarantee Scheme, Equity Fund, Wholesale Financing and Business Support.

The Lesotho National Development Corporationhosted the 4th forum of the Southern African

Development Community (SADC) Investment Promotion Agencies (IPAs) on the 17th and the

18th February, 2015 in the Capital Maseru.

The objective of the forum was to accelerate the regional eco-nomic integration agenda and promote peer to peer learningamongst SADC Investment Promotion Agencies.“The integration agenda is a topical issue that calls for moreattention from relevant bodies. We hope that the forum willassist the region to appreciate the benefits of integration andthus unify the IPAs’ voice to reassure governments of the 14SADC countries,” says Mr. Kelebone Leisanyane, LNDCCEO.

During the forum, participants visited the Lets’eng DiamondMine as one of the locations of economic interest in Lesotho.The meeting was expected to increase knowledge andshared experiences of investment climate developments inthe SADC Region. Global FDI flows grew by 9% in 2013 andare projected to grow even further until 2016.According to the 2014 World Investment Report producedby UNCTAD, mega-regional groupings shape the GlobalFDI flows, with Asia-Pacific Economic Cooperation account-ing for the largest share of 54%.

Conversely, Africa and Least Developed Countries are ex-periencing high FDI flows in manufacturing and servicessectors; shifting more and more from dependency on extrac-tive industries. More FDI flows are also in basic infrastruc-ture and energy projects, with FDI continuing to be a majorsource of finance.

LNDC and Mauritius sign an MoU

At the closing ceremony of the SADC IPA Forum in Thaba-Bosiu in February, LNDC signed a Memorandum of Under-standing with the Board of Investment Mauritius. The MoU ismeant to strengthen investment promotion and facilitation,as well as to build reciprocal cooperation between the two in-stitutions.

Both LNDC and BOI, support promotion of regional integra-tion and the signed agreement seeks to establish a practicalframework for development of business relations between thetwo parties, set forth procedures of cooperation for the expan-sion of investment and trade relations, as well as strengtheninstitutional relations and capacity building.

The Board of Investment (BOI) is the national investment pro-motion agency of the Republic of Mauritius, mandated tostimulate the development, expansion and growth of theeconomy by promoting Mauritius as an international invest-ment, business and service centre.


LNDC hosts the SADC Investment Promotion Agencies Forum

Delegates at the 2015 SADC IPA Forum pose with Trade Minister and LNDC CEO.

Johnsson Controls in Maseru

In the quest to intensify efforts in promotion of in-vestment opportunities in the Automotive Industry,LNDC is working on an initiative to unpack incen-tives provided by the Automotive Production and

Development Programme (APDP). By virtue ofbeing a Southern African Customs Union member,

Lesotho can benefit from the programme.

LNDC together with Officials from the Ministry of Trade and

Industry, the Lesotho Revenue Authority, Private Sector

Competitiveness Project and Basotho Enterprise Develop-

ment Corporation attended a two-day workshop at the De-

partment of Trade and Industry (DTI) in Pretoria in March.

Head of Investment Promotion, Mr. Mokhethi Shelile says

“This initiative is a result of the Lesotho-RSA Trade and In-

vestment Roadshow that was launched in Sandton in March

2014. Our plan is to develop an automotive cluster for Lesotho

around the incentive programme and to capitalise on

Lesotho’s competitive advantage.”

South Africa makes 40% and imports 60% of components;

meaning there is a lot that can be done regarding car manu-

facturing in the region. Lesotho was advised by a private sec-

tor representative of the automotive industry; NAACAM, to

explore opportunities and harness benefits brought by tiers 2

& 3 in the automotive supply chain.

Speaking at the closure of the workshop, Mr. Shelile said

LNDC had signed a number of MoUs in the region. “We are

here to make a business proposition to the DTI, to ensure sta-

bility of the industry in the region and to see if tiers 2 & 3 can

grow and stabilise as well as benefit our region in the end.”

Preceded by a tour of the BMW manufacturing plant, the

workshop featured presentations on the SACU Perspective;

Private Sector Perspective-South African Automotive Indus-

try Overview as well as Automotive Components.

Further strides inthe promotion ofopportunities inthe automotive

industry


Formosa Textiles employs 10 000 Basotho and is the pioneerof the Industrial Attachment Programme that has co-opted 10Basotho young professionals to give them an insight into pro-duction and management of a Textile Operation. These grad-uates are attached in different sections such as the finishing,engineering and yarn departments.

Among some of the challenges that were brought to the at-tention of the CEO, was the language barrier; which Formosaplans to overcome by setting up a Chinese Language Teach-ing Centre.

CEO at CGMDuring the same quarter, Mr. Kelebone Leisanyane also vis-ited the pioneers of the Garment Industry; CGM, the first for-eign direct investment company that arrived in Lesotho in1987. CGM employs more than 4000 workers from the initialemployment of 300 workers.

CGM started diversifying its products from jeans to workwear; as well as diversifying its market from the United Statesand directing attention to the South African and Zimbabwean

Markets, to manage the risk in case the AGOA renewal wouldnot materialise.

CGM Managing Director, Mr. Madhav Dalvi said he waslooking forward to support pledged by the CEO when he ac-cepted leadership of the Corporation that; he would assist theindustry to become self-sufficient and sustainable. He addedthat his company would soon be supplying Uniform to theLesotho Defence Force; which marked another milestone inthe journey of the CGM group in Lesotho.

CEO tours Textile FactoriesThe Chief Executive Officer, Mr. Kelebone Leisanyane has begun a familiarisation tour of different factories

under the LNDC portfolio. The CEO has this quarter visited Formosa Textiles as well as CGM.

CEO K. Leisanyane on a guided tour of Formosa Textiles

Factory Manager, Mr. M. Dalvi shows the CEO some of thegarments produced by CGM



LNDC hosts a Risk Mitigation Workshop“Interest to invest in Africa by foreign financiers is report-edly on a steady surge, despite the high business risk thecontinent faces,” says the Chief Executive Officer of theLesotho National Development Corporation (LNDC) Mr.Kelebone Leisanyane.

The CEO was speaking at a two-day workshop hosted bythe LNDC to sensitise local business stakeholders on busi-ness risk mitigation.

The workshop, which was attended by members of boththe public and private sector, was held in collaborationwith the African Development Bank Group (AfDB) andInitiative for Risk Mitigation in Africa (IRMA).

Mr. Leisanyane told participants that the objective was todiscuss mitigating business risk, which he said affects theinvestment climate in the country.

“This phenomenon has stimulated a lot of interest fromforeign investors, which are now increasingly focusingtheir attention on Africa. Their perception is that the levelof business risk incurred when operating in Africa is stillquite high,” which is Africa’s responsibility to manageand change.

“It is important that both investors and national authorities

are fully aware of the existence of a variety of instrumentsthat have been designed with the purpose of managingand mitigating the risk borne by private sector operatorswhen doing business in Africa, especially in the infrastruc-ture sector,” the CEO said.

He further noted that investment needs in Africa are enor-mous because estimates published by the Africa Infrastruc-ture Country Diagnostic (AICD) show that every year,African economies need funds worth a total US$93 billionto maintain, upgrade and build infrastructure.

A consultant commissioned by the African DevelopmentBank Group, Mr. Keith Martin, said: “While an importantpart of these needs is financed through national budgets,and even considering that important efficiency gains arebeing achieved; the estimated annual gap is approximatelyUS$31 million.”

Mr. Martin also noted that both the AfDB and IRMA havelaunched a capacity-building programme on the Africancontinent that is aimed at improving the capacity of gov-ernments, ministries, regulatory agencies and stateowned enterprises in order to appreciate and apply thebest practice risk analysis models as well as implementmitigating tools, to allow for an amelioration of risk pro-file of projects.

CGM is a mentor of Industrial Garments Manufacturers(IGM), established and fully run by a Mosotho entrepreneurunder close supervision and guidance. The Company haspledged to lease machines and donate fabric, accessories andprovide training to more Basotho entrepreneurs willing to be-come players in the garment Industry. “If LNDC wants totake the lead to explore this development, I am willing to as-sist and turn five more local entrepreneurs into garment In-dustrialists,” said Mr. Dalvi.

Speaking during the tour, Mr. Leisanyane said “It is impor-tant for us to work hard and duplicate the effort, roll it out tothe rest of the public. I applaud CGM for reaching out to ourlocal people by sharing skills and mentoring them to establishthemselves in this complex industry.”

The CGM management disclosed during the CEO’s visit; its in-tention and plans to open a factory outlet, also indicating thatas part of its Corporate Social Responsibility Programme, CGMplans to create 20 outlets that would be owned by Basotho.

The tour ended at IGMFrom a warehouse to a garment manufacturing factory! That’sthe story of the one year old Industrial Garment Manufactur-ers (IGM); an official mentee of the CGM.

“The issue of the extension of AGOA said to me, there is vul-nerability; Vietnam and Cambodia are becoming threats toLesotho. I took my chances soon after leaving the ministerialpost,” said, Dr. Timothy Thahane, the founder of IGM whenbriefing LNDC CEO during his first tour of the facility.

“We are very happy with the model. However, we still needto think as a country; how do we partner with Government,LRA and LNDC to make it a success?” Dr. Thahane also ac-knowledged that the Magic Show was of great benefit to IGMas a new player in the industry. “The Market was huge, andthe exposure gave us a lot on new ventures and what one hasto look out for,” said Mr. Chris Mohapi, the IGM Manager.

CEO on a guided tour of IGM by Production Manager,Ms. Nthati Thahane


Lets'eng Diamonds CEO welcomes SADC IPA Delegates

CGM Factory Outlet at Thetsane Industrial

Delegates from Lesotho attend the APDP workshop in Pretoria

Mr. K. Leisanyane on a guided tour of the Maluti Mountain Brewery

Serumula Performing Arts Academy entertaining delegates the closing ceremony of the SADC IPA Forum

Tlotliso Holdings and Luqy’s Manufacturing participateat the Magic Show in the USA

LNDC in Pictures

Political Stability

A stable social and political environment which is investorfriendly.

A free enterprise and free market economic system whichforms the basis for sustained development and growth.

Labour

A young abundant predominantly English speaking, literateand well-motivated labour force with a tradition of manualdexterity at competitive wage rates.

Market Access

55 million consumers in Southern African Customs Union(SACU).

Preferential access to 260 million consumers in the SouthernAfrican Development Community (SADC) market.

Duty and quota-free access to the United States market(310 million consumers) through the African Growth andOpportunity Act, (AGOA).

Export of all Lesotho-made products to the EU (500 millionconsumers) duty free under SACU EPA Agreement.

Preferential trade agreements between SACU and MERCO-SUR (Argentina, Brazil, Paraguay and Uruguay) as wellas SACU EFTA (Iceland, Liechtenstein, Norway andSwitzerland)

Lesotho also enjoys preferential market access, duty andquota free in countries such as Australia, Canada, Japan, NewZealand, Turkey and Nordic countries.

Tax/Financial Incentives

10% corporate tax on profits earned by manufacturingcompanies exporting outside SACU.

Corporate tax rate of 10% on profits earned on exports withinSACU.

No withholding tax on dividends distributed by manu-facturing companies to local or foreign shareholders.

Unimpeded access to foreign exchange.

Easy repatriation of manufacturing profits.

Training costs are allowable at 125% for tax purposes.

Payments made in respect of external management skills androyalties related to manufacturing operations are subject towithholding tax of 10%.

Import VAT credit facility that provides for an input tax creditupon importation and local purchasing of raw materials andcapital goods.

Bank administered foreign currency accounts are permissible.Double taxation agreements with R.S.A. and U. K.

Industrial Infrastructure

Serviced industrial and commercial sites, factory shells andcommercial buildings are available for rental at competitiverates.

Special incentives for construction of investor-financedfactory buildings.

Easy access to Gauteng and the Durban harbour.

Full government support on trade and investment issues.

Backstopping services from the Lesotho National Develop-ment Corporation in relation to procurement of all permits,licenses, and company registration.


Why invest inLESOTHO?

News · 2015. 6. 2. · LNDC NEWS January - March 2015 1 The past quarter of the 2014/2015...

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Transcript of News · 2015. 6. 2. · LNDC NEWS January - March 2015 1 The past quarter of the 2014/2015...